High LeverageElevated leverage increases interest expense sensitivity and refinancing risk, reducing financial flexibility. In a tightening funding environment or credit downturn, high debt amplifies stress on capital and could force costly deleveraging or slow growth to preserve solvency.
Negative Operating Cash FlowPersistent negative operating and free cash flows limit the firm's ability to self-fund loan growth, servicing operations, and reserves. Reliance on external funding amid high leverage creates structural liquidity vulnerability over the medium term.
Volatile / Declining Revenue GrowthMeaningful revenue volatility and recent decline reduce predictability of earnings and provisioning needs in lending. This instability complicates strategic planning, stress-testing, and may require continued tight cost controls or increased external capital to sustain growth.